Singapore REITs Monthly Update (June 15th, 2025)

  • Post author:

 

Technical Analysis of FTSE ST REIT Index (FSTAS351020)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 631.68 to 638.78 (1.12%) compared to last month’s update. It has continued to trade between 622 and 200D SMA (658 currently) following the April flash crash caused by “Liberation Day” announced by US President Donald Trump. Immediate support is at 622, tested 4 times between April 2024 and most recently on 15th May.

  • Short-term direction: Sideways
  • Medium-term direction: Sideways
  • Long-term direction: Sideways
  • Immediate Support: Blue Support Line (622), followed by 586 (Mar 2020 crash)
  • Immediate Resistance: 200D SMA

 

FTSE REIT Index Chart (2 years)

Previous chart on FTSE ST REIT index can be found in the last post: Singapore REIT Fundamental Comparison Table on May 11th, 2025.

 

Fundamental Analysis of 37 Singapore REITs

The following is the compilation of 37 Singapore REITs with colour-coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.

  • The Financial Ratios are based on past data and these are lagging indicators.
  • All REITs have the latest Q1 2025 values.
  • I have introduced weighted average (weighted by market cap) to the financial ratios, in addition to the existing simple average ratios. This is another perspective where smaller market cap REITs do not disproportionately affect the average ratios. As of May 2025 I have removed EC World REIT from these calculations. 
  • Following its delisting, Paragon REIT has been removed.

Data from REITsavvy Screener. https://screener.reitsavvy.com/

 

 

 

What does each Column mean?

  • FY DPU: If Green, FY DPU for the recent 4 Quarters is higher than that of the preceding 4 Quarters. If Lower, it is Red.
  • Yield (ttm): Yield, calculated by DPU (trailing twelve months) and Current Price as of June 13th, 2025.
  • Gearing (%): Leverage Ratio.
  • Price/NAV: Price to Book Value. Formula: Current Price over Net Asset Value per Unit.
  • Yield Spread (%): REIT yield (ttm) reference to Gov Bond Yields. REITs are referenced to SG Gov Bond Yield.

As of May 2024, all REITs’ Yield Spread will be referenced to SG Gov Bond Yields, regardless of trading currency.

Price/NAV Ratios Overview

  • Price/NAV remained at 0.76 (Weighted Average: 0.95)
    • Remained at 0.76 in May 2025.
    • Singapore Overall REIT sector is slightly undervalued
  • Most overvalued REITs (based on Price/NAV)
    ParkwayLife REIT 1.66
    Keppel DC REIT 1.49
    Capitaland Ascendas REIT 1.19
    Mapletree Industrial Tr 1.15
    Frasers Hospitality Trust 1.09
    AIMS APAC REIT 1.07

    EC World REIT is currently suspended, however at current Price and NAV/Unit values it has a value of 7.00 (N.M)

  • Most undervalued REITs (based on Price/NAV)
    Lippo Malls Indonesia Retail Trust 0.18
    Manulife US REIT 0.26
    Prime US REIT 0.27
    Keppel Pacific Oak US REIT 0.28
    Acrophyte Hospitality Trust 0.42
    OUE REIT 0.48

Distribution Yields Overview

  • TTM Distribution Yield decreased slightly to 5.99%. (Weighted Average decreased to 6.08%)    
    • Decreased from 6.27% in May 2025. (Weighted Average was 6.17%)
    • 19 of 37 Singapore REITs have ttm distribution yields of above 7%.
  • Highest Distribution Yield REITs (ttm)
    IREIT Global 9.69
    Sasseur REIT 9.50
    United Hampshire REIT 9.23
    Stoneweg European REIT 9.18
    ESR REIT 9.17
    Elite UK REIT 8.70

     

    Reminder that these yield numbers are based on current prices. 

    • Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.
    • A High Yield should not be the sole ratio to look for when choosing a REIT to invest in.
  • Yield Spread tightened slightly to 3.91%. (Weighted Average tightened slightly to 3.74%)     
    • Tightened from 3.93% in May 2025. (Weighted Average was 3.79%)
    • From May 2024 onwards, all my yield spread measurements are now in relation to SG Gov Bond Yields, no longer a mix with US Gov Bond Yields.

 

Gearing Ratios Overview

  • Gearing Ratio increased to 39.94%. (Weighted Average: 38.35%)
    • Increased from 39.80% in May 2025. (Weighted Average: 38.27%)  
    • Gearing Ratios are updated quarterly. All values are based on the most recent Q4 2024 updates.
    • S-REITs Gearing Ratio has been on a steady uptrend. It was 35.55% in Q4 2019.
  • Highest Gearing Ratio REITs
    Manulife US REIT 59.4
    EC World REIT 56.8
    Prime US REIT 46.8
    Lippo Malls Indonesia Retail Trust 44.2
    Keppel Pacific Oak US REIT 43.7
    Suntec REIT 43.4

    MUST and EC World REIT’s gearing ratio has exceeded MAS’s gearing limit of 50%. However, the aggregate leverage limit is not considered to be breached if exceeding the limit is due to circumstances beyond the control of the REIT Manager.

Market Capitalisation Overview

  • Total Singapore REIT Market Capitalisation decreased by 2.01% to S$86.45 Billion.
    • Decreased from S$88.23 Billion in May 2025.
    • This decrease can be attributed one-time, due to the delisting of Paragon REIT.
  • Biggest Market Capitalisation REITs (S$m):
    Capitaland Integrated Commercial Trust 15545.74
    Capitaland Ascendas REIT 11484.00
    Mapletree Pan Asia Commercial Trust 6316.68
    Mapletree Logistics Tr 5675.04
    Mapletree Industrial Tr 5587.96
    Keppel DC REIT 5036.52
  • Smallest Market Capitalisation REITs (S$m):
    Lippo Malls Indonesia Retail Trust 76.97
    Manulife US REIT 110.10
    Acrophyte Hospitality Trust 174.03
    Elite UK REIT 196.09
    Prime US REIT 196.20
    Keppel Pacific Oak US REIT 198.45

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. If you want to know more about investing in REITs, scroll down for more information on the REITs courses.

 

Top 10 Best/Worst Performers of May 2025

Refer to the Detailed 2024 S-REITs Performance Here.

 

SG 10 Year Government Bond Yield

  • SG 10 Year: 2.25% (decreased from 2.51%)

 

Summary

Singapore REITs sector is within a range between 620 and 660. The US 10Y Risk Free Rate has decreased to 4.41%, while the SG 10Y Risk Free Rate decreased by 0.26%. However, average yield decreased due to the slight increase in the index, explaining the slight tightening of the Yield Spread w.r.t to the SG Risk Free Rate.

Singapore REITs sector has very strong inversed correlation with US 10Y Risk Free Rate. For S-REIT to come back to live again, we need the US 10 year risk free rate to come down otherwise the performance of Singapore REIT index will continue to be muted.

 

 

US 10 Year Risk Free Rate

 

Fundamentally, the S-REIT sector is trading at a 24% discount (5% if using weighted average) to its fair value, with an average trailing twelve-month (TTM) yield of 6.03%. This is very undervalued and at levels only seen previously in the March 2020 COVID crash.

According to the current Fed Fund Rate projections from the CME Group, the market expects a 25 basis point cut by Q3 2025. The cut in interest rate will help to boost the DPU of the REITs which have shorter debt maturity profile and higher percentage of floating rate. However, the impact will only be reflected in the financial statement probably in Q3 or Q4 2025. 

 

 

 

Kenny Loh is a distinguished Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.

In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).

With over a decade of experience in holistic estate planning, Kenny employs a unique “3-in-1 Will, LPA, and Standby Trust” solution to address clients’ social considerations, legal obligations, emotional needs, and family harmony. He holds double master’s degrees in Business Administration and Electrical Engineering, and is an Associate Estate Planning Practitioner (AEPP), a designation jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of the United Kingdom and Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.

You can join his Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingSingapore REITs Monthly Update (June 15th, 2025)

Money and Me: S-REITs Bounce Back? China’s REIT Game-Changer and the hunt for yield of up to 8%

  • Post author:

13 May 2025

Are Singapore REITs back in favor after April’s sell-off?

Following the early April market slump, Michelle Martin asks if S-REITs have found their footing — and how closely they now track US market movements.

What does Singapore’s decisive election result mean for REIT investor confidence?

Plus, we unpack CapitaLand’s groundbreaking launch of the first Singapore-sponsored retail REIT on the Shanghai Stock Exchange and what it signals for investors.

And if T-bill yields at 2.3% feel lackluster, where else can cautious investors look?

Hosted by Michelle Martin with REIT specialist Kenny Loh.

Note: The above analysis are my own personal views and are NOT buy or sell recommendations. Investors who would like to leverage my extensive research and years of Singapore REIT investing experience can approach me separately for a REIT Portfolio Consultation.

Listen to his previous market outlook interviews here:

2025

2024

2023

2022

2021

2020

Kenny Loh is an Associate Wealth Advisory Director and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.  

You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingMoney and Me: S-REITs Bounce Back? China’s REIT Game-Changer and the hunt for yield of up to 8%

Navigating U.S. Estate Tax on U.S. Stock Holdings: A Guide for Singapore Investors

  • Post author:

Introduction

Apple, Nvidia, Tesla, Microsoft, Amazon…… many of us, especially younger investors, are drawn to these US Stocks, known for their stellar performance over the years. The S&P 500 has delivered an average annual return of 10.33% since 1957 (Investopedia). However, did you know that owning these stocks directly as a non-U.S. person (like us) can trigger a significant tax burden upon death? This tax, the U.S. estate tax, can claim up to 40% of the value of your US assets, drastically reducing the wealth passed on to your beneficiaries.

Understanding the US Estate Tax

The US estate tax applies to “US situs” assets owned by non-resident, non-citizen individuals at the time of their death. These assets include shares in companies incorporated in the US, US real estate, certain US-based bonds and mutual funds, and even cash deposits held with US brokers.

Unfortunately, the threshold for exemption is extremely low for non-US persons. Only the first US$60,000 of US situs assets is exempt from tax. Any value above that amount may be subject to estate tax, at rates that can go as high as 40%.

For example, a Singaporean investor with a portfolio of US stocks valued at US$1 million would only receive an exemption of US$60,000. The remaining US$940,000 would be subject to estate tax, potentially resulting in a tax bill of up to US$376,000!

Furthermore, the executor of the estate must file IRS Form 706-NA within nine months of the investor’s death and settle the tax liability to obtain a Federal Transfer Certificate. Without this certificate, US custodians may refuse to release or transfer the deceased’s assets to their beneficiaries.

 

Estate Planning Strategies to Reduce Exposure

So how can we mitigate this devastating tax burden? Here are 5 strategies that you can possibly execute to do so.

  1. Restructuring your Portfolio

  • Keep direct U.S. stock holdings below US$60,000
  • Increase exposure via non-US ETFs or mutual funds that invest in U.S. markets but are domiciled in Ireland, Luxembourg, or Singapore

These instruments (unit trusts, ETFs, mutual funds etc.), despite investing in US equities, won’t be subjected to the US estate tax as they are not domiciled in the US. For Singaporeans, this could be investing in unit trusts through brokers like Phillip Securities, or ETFs listed on the Singapore Exchange (SGX).

  1. Use an Insurance Wrapper

  • Purchase investment-linked insurance plans (ILPs) that invest in US equities
  • Death benefit proceeds are not classified as US situs assets if structured properly

You can involve an insurance-based investment product, such as investment-linked insurance policies (ILPs). They typically combine investment in global markets with life insurance coverage. So even if there is US stock exposure within the ILP, it should not be subject to US Estate Tax as the asset is not held by the investor personally.

However, you have to ensure that the policyholder and beneficiary structures are clear.

  1. Set Up a Holding Company

  • Hold US stocks via a non-US corporation (e.g. setting a company in Singapore)
  • The company, not the individual, owns the US assets, potentially removing them from the personal estate

But! It may give rise to other tax considerations, such as capital gains tax upon sale of the company’s shares. In addition, it gives rise to additional tax complications depending on jurisdiction. Proper legal and tax advice is essential before implementing this structure.

  1. Create a Trust Structure

  • Transfer U.S. stocks into a foreign irrevocable trust

Trusts can be especially useful to pass down your wealth to future generations. However, trust creation and maintenance involve higher costs and usually require professional management, and the structure must be carefully designed to avoid triggering adverse tax consequences in other jurisdictions.

  1. Cash Creation via Life Insurance

  • Purchase a life insurance policy whose death payout covers the expected U.S. estate tax
  • This ensures liquidity for your estate without forced asset sales

Lastly, you can purchase a life insurance policy with a death benefit sufficient to cover the anticipated estate tax. This ensures that the estate has enough liquidity to settle any tax due without having to sell US investments under pressure or delay asset distribution to beneficiaries.

This may be a good strategy if you already have a large US asset portfolio. However, you need to forecast accurately your estate value and tax liability. Also, unlike some of the other solutions, this still requires you to file tax with the IRS, which is not an easy procedure.

Conclusion

Many of us are either unaware or are indifferent of the complications arising from this US Estate Tax. But it can take away a significant portion of your wealth (up to 40%!) that you can transfer to your future generations. Therefore, it is crucial to mitigate these effects in order to preserve your wealth for your future generations. Failing to plan is planning to fail!

Kenny Loh is a Wealth Advisory Director and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.  You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingNavigating U.S. Estate Tax on U.S. Stock Holdings: A Guide for Singapore Investors